Institutional investors are looking for bond dealers to invest more in increased automation supported by more data and more application programming interfaces, according to a new survey from Coalition Greenwich.
The survey, which polled 67 buy-side corporate bond traders located in the U.S. and Europe, found nearly half (47 per cent) want to see improved auto-quoting functionality and 39 per cent are interested in more data. Indeed, 14 per cent of respondents said they are interested in trading via APIs.
The survey called the demand for API trading still relatively small but noted it as a sign of things to come. It said the adoption of execution management systems remains relatively limited even though there’s been significant innovation between providers.
“The buy side wants their dealers to continue investing in auto-quoting, expanding the universe of covered names beyond liquid investment-grade bonds into high yield and emerging markets,” said the survey.